Real Estate Opportunities in Pyeongtaek: Analyzing the Impact of the GTX Expansion Plan

2024-01-27 13:45:55

“Two teams went to see it today, and there are reservations lined up for the weekend as well. All tickets for Mafi (short for ‘minus pi’) have been sold out.” (Mr. Lee, certified real estate agent in Pyeongtaek-si, Gyeonggi-do)

Real estate in the metropolitan area is shaking as the government announced on the 25th a plan to extend the GTX-A, B, C lines and build new D, E, F lines. GTX, which is three times faster than the subway, is expected to be a transportation revolution that will dramatically shorten the psychological distance between Seoul and other metropolitan areas. Accordingly, end users are weighing where the ‘golden GTX route’ will be. However, experts said, “GTX is not an ‘all-purpose key’ to increase house prices,” and urged, “You must objectively judge the surrounding environment and opening time before investing.”

On the 25th and 26th, Maeil Business News YouTube’s Maeburi TV conducted a survey of 479 subscribers immediately following the government’s GTX announcement on the ‘areas most anticipated by the GTX announcement’. As a result, the largest number of respondents (44%) chose Pyeongtaek as a favorable region for GTX. They responded that Pyeongtaek, where both GTX-A and C routes are extended, is most expected to see an increase in real estate values ​​due to GTX. Second place was Incheon Geomdan (21%), where Seoul Subway Line 5 was extended and the GTX line was introduced, and third place was Cheonan, South Chungcheong Province (14%), where the GTX-C line extension was announced.

On the 25th, Pyeongtaek also stood out in the ranking of areas of interest on the real estate information application (app) Hogaengnono. Major areas in Pyeongtaek, including Jije-dong (1st place), Segyo-dong (5th place), and Dongsak-dong (11th place), ranked high in ‘popular areas’ visited by many users.

The asking price for Jije Station The Sharp Central City, an apartment near Jije Station, rose by more than 100 to 200 million won immediately following the government’s announcement. This apartment with an exclusive area of ​​115㎡ was traded for 1.1 billion won in October last year, but the asking price jumped to 1.4 billion won immediately following the government announcement. An official at a nearby real estate agency said, “We are receiving continuous calls to make reservations to view the house even on weekends.” However, most regions are quiet even though the new GTX route has been announced. An official from a real estate agency in Geomdan City explained, “It doesn’t seem like there has been an increase in purchase inquiries,” adding, “At this point, the real estate market recession and interest rates are having a bigger impact on the price than the good news related to GTX.” GTX is more effective the farther away it is from Seoul. This is because the location value increases as infrastructure is built in a transportation barren area. According to the ‘Study on the Impact of GTX on Gyeonggi-do Apartment Prices’ published by the Korean Transportation Society in 2020, Yangju-si, Dongducheon-si, and Namyangju-si were selected as Gyeonggi-do areas with a high rate of change in apartment prices due to GTX. Suwon Jangan-gu, Yeongtong-gu, and Gwacheon City, which have metropolitan buses and subways, had a low rate of change in apartment prices due to GTX. Like this, the outskirts without transportation infrastructure will benefit greatly when GTX is established. However, it is dangerous to think that house prices will inevitably rise just because the GTX is built.

Experts advised that if you invest only in the good news of GTX, you may end up in failure. This is a warning that we should not expect housing prices to rise in all areas where GTX is launched. Go Jun-seok, head professor at Yonsei University’s Sangnam Business Institute, said, “The most important thing is jobs. There are plenty of jobs, but adding GTX is the icing on the cake,” and pointed out, “If there are no jobs and only GTX is built, it becomes nothing more than a bed town.” In Dongtan, where Samsung Electronics is located, the price of apartments near the station (Lotte Castle at Dongtan Station) has risen more than three times compared to the sale price due to expectations of the opening of GTX, but in northern Gyeonggi Province, such as Uijeongbu, where jobs are lacking, price increases are slow despite the favorable GTX.

You should also pay attention to the opening time. The government announced the construction of new GTX-D·E·F lines on this day and announced that it will reflect it in next year’s 5th rail network plan and pursue its opening by 2035. However, it was in 2009 that the first GTX-A·B·C routes were first discussed. After 15 years, some GTX-A routes (Suseo-Dongtan) are scheduled to open in March.

GTX fees are also an important factor in determining GTX real estate value. This is because if the fee is high, the impact of GTX will inevitably be small. If the daily round-trip GTX fee is 15,000 won, transportation costs per month (assuming you go to work 5 times a week, 20 days a month) amount to 300,000 won. I live in Gyeonggi-do to save on housing costs, but if I have to pay 300,000 won more in transportation costs, there is no reason to live in Gyeonggi-do. Conscious of this, the government also emphasized that it will set GTX transportation costs at a level that the common people can understand.

Park Won-gap, senior real estate expert at KB Kookmin Bank, advised, “For GTX to become established, three elements, including jobs, rates, and urban planning, must be properly met.”

[이선희 기자 / 한창호 기자]

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